Retail investors play a losing game with complex options

Discussion in 'Options' started by ironchef, Oct 27, 2024.

  1. poopy

    poopy

    draw? def bot. typing with one hand?
     
    #61     Oct 28, 2024
  2. spy

    spy

    No draw... total failure. Keep trying. Maybe in 50 years, idk.
     
    #62     Oct 28, 2024
  3. poopy

    poopy

    yeah, your skew chart was a failure. Admitting you have a problem is a good start.
     
    #63     Oct 28, 2024
  4. spy

    spy

    :thumbsup: The automated insult dog angle has more hope.

    You could sell it to Mattel and they could make a doll.
     
    #64     Oct 28, 2024
  5. poopy

    poopy


    It's a structure, right? Clearly you're applying them neutral or near neutral to the forward strike and the sht you're trading is trading away. There is no such thing as neutrality. You have to be able to forecast vol or price (or both). Either will probably do. Randomly shorting an iron is worse than random with paying NBBO and comms, right? So don't do it.
     
    #65     Oct 28, 2024
    nbbo and ironchef like this.
  6. ironchef

    ironchef

    Thank you sir, for the coaching. Let me take a look there.

    I trade thinly traded names because I think I have an edge there. But no free lunches either over there, I get rewards from big underlying moves where 5% off mid does not matter, for single legs.
     
    #66     Oct 28, 2024
  7. ironchef

    ironchef

    I still don't understand structure. It was basically directional bets.
     
    #67     Oct 28, 2024
  8. poopy

    poopy

    What edge? If it's on the name then trade the shares because you don't have an edge in vol in the name. I monitor microstructure on tick data and I am trading the most liquid names in the world and there is always edge loss. You have no chance trading three/four legs in illiquid names. It's suicide.

    Dec skew is extreme and as a result I am neutral here, but that's skew capture. You should not be neutral D when trading share-vol.
     
    Last edited: Oct 28, 2024
    #68     Oct 28, 2024
    ironchef likes this.
  9. poopy

    poopy

    #69     Oct 28, 2024
  10. poopy

    poopy


    So you were taking an initial delta position. It would help if I had an example.
     
    #70     Oct 28, 2024